Abstract

High-quality economic growth is economic growth that can encourage industrialization, can create jobs as wide as possible and can encourage the performance of other sectors more efficiently and effectively, high economic growth accompanied by efficient and effective allocation of resources can be stimulus in development to improve people's income so that it can reduce poverty. To reduce the level of poor people, of course, requires increased economic growth and equitable income distribution, rapid economic growth and not balanced with equity will lead to inequality between regions. There are several kinds of disparities that often block a society in its efforts to achieve prosperity, namely: (1) disparities between regions, (2) disparities between sectors, (3) disparities in the income distribution of the community.
 Studi aims to examine and analyze the effect of government investment and private investment on poverty levels through economic growth and labor absorption in South Kalimantan Province. The data analysis method used in this study is PLS to test the seven hypotheses formulated in this study.
 The conclusions of the results of this study are: 1) Government investment has a significant impact on economic growth. 2) Government investment does not have a significant impact on labor absorption. 3) Private investment does not have a significant impact on economic growth. 4) Private investment has a significant impact on labor absorption. 5) Economic growth has a significant impact on labor absorption. 6) Economic growth has a significant impact on reducing poverty levels. 7) Labor absorption has a significant impact on reducing poverty levels.
 

Highlights

  • PRELIMINARY The economic development pursued by developing countries aims to achieve prosperity and prosperity for the entire community

  • Effects of Income Disparity Moderation on the Effect of Economic Growth on Poverty Rate The results of testing the hypothesis of the effect of income disparity moderation on the effect of economic growth on poverty levels, using Partial Least Square (PLS) analysis with the help of SmartPLS software shows the magnitude of the interaction effect is 0.082 with a T-statistics value smaller than 1.96, so it can be concluded that income disparity does not moderate the effect of economic growth on poverty levels, this shows that the magnitude of the effect of economic growth on poverty levels is the same, both in districts /cities with low or high-income disparities

  • Based on the analysis of the results of studies and discussions on the effects of government investment and private investment on economic growth, employment and poverty levels in districts/cities in South Kalimantan Province, the following are the conclusions: 1. Government investment has a positive and significant effect on economic growth in districts/cities in South Kalimantan Province, a positive coefficient is significant if government investment increases, economic growth will increase significantly

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Summary

Introduction

PRELIMINARY The economic development pursued by developing countries aims to achieve prosperity and prosperity for the entire community. Achieving the welfare of the community, the main problems faced by every developing country including Indonesia are unemployment, unequal distribution of income and poverty. The inability of market mechanisms in classical economic theory to answer economic problems is the starting point for the development of Keynes's thought. Adam Smith (1776) began to lose its role to be replaced by a new thought driven by John Maynard Keynes with his book The General Theory of Employment, Interest and Money (1936) which was responded by public at that time including the President of the United States of America, Richard Nixon, affect US economic policy. WW growth model, Rostow (1960) emphasizes that the state can only reach the stage of take-off towards sustainable economic development driven by innovations and increased investment so that the level of increasing national income is higher than the level of population growth (Sukimo, 1985: 107). Many other factors affect poverty reduction, such as economic structure, patterns of the income distribution, availability of natural resources, quality of human resources, technological mastery, investment levels, and the seriousness of the government in poverty reduction efforts (Tambunan, 2008: 172)

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